Saturday, January 14, 2012

Stocks to watch for the January 17-20

First on my list is Bank of America, BAC.

The weekly chart is slow moving and normally late getting in and late getting out but it will eliminate the noise. Everything on this chart is screaming buy me right now but knowing that earnings will be reported1/19/2012 before the market opens will cause me to pause until Thursday morning. Do not worry catching the initial surge up because this stock has the potential to run to $15. That would still be close to a 100% return. Take a quick look at the daily chart because that has a few notes on it, but basically it is still a wait and see. I would not chase this until the report.

Freeport McMoran, FCX is turning the corner for a new long term uptrend on the weekly chart. A long series of lower pivot highs was broken just just week. The turn officially started October 3, 2011 so this new swing has been a work in progress and is not a knee jerk. We also have 2 higher pivot lows for support. The level that was finally broken was $41.22 so we are just a few days behind. Looking at the daily chart we can use this to our advantage. We should wait to see if $41.22 holds, because Friday share price did turn down with the rest of the market. So we need price to do one of two things. Hold above $41.22 the drive through the last high of $42.69 and buy at $42.70 or above. Second we could watch price fall through $41.22, create a higher pivot low somewhere about $38 and then buy once that pivot low was created. You would not know price until the pivot was created. My guess would be between $38 and $41. FCX also pays a 2% dividend. Either this is a definite watch this week.